KUALA LUMPUR (July 18): Builder Haily Group Bhd (KL:HAILY) has secured a RM76.65 million contract to construct 171 units of link houses in Kempas Baru, Johor Bahru.

Haily said its wholly-owned subsidiary, Haily Construction Sdn Bhd, has accepted a letter of award issued by Razin Architects Sdn Bhd on behalf of Kews Senibong Sdn Bhd, according to a bourse filing on Thursday.

The project will be executed in two phases. The first phase, commencing on July 16, is expected to be completed by October 15, 2025. The second phase will start within nine months from the commencement date of the first phase and is expected to be completed within 22 months.

“The board expects the letter of award to contribute positively to Haily Group’s earnings and net assets over the duration of the project, assuming no material delays,” Haily said.

For the first quarter ended March 31, 2024, Haily’s net profit fell 17.6% year-on-year to RM1.53 million due to lower profit margins and higher expenses. However, revenue grew 6.03% to RM72.11 million, driven by building construction projects, including the Mutiara Maju, Taman Impian Emas, and Bandar Putra projects.

Shares of Haily have rallied over the past week, charting a historical high of 79 sen on Wednesday, a few days after the company proposed a one-for-one bonus issue of shares and warrants. Year to date, the stock has climbed 34 sen or 79%.

Haily’s shares closed up 0.5 sen to 77 sen on Thursday, giving it a market capitalisation of RM151.04 million.